Industry

The effects of the COVID-19 virus, in tandem with the ongoing crude oil price war, are likely to reduce oil and gas project sanctioning by up to $131 billion, or about 68% year-on-year, as major players batten down the hatches to weather the story, according to Rystad Energy.

At the same time, at least nine of the world’s top planned exploration wells for 2020 are at risk of suspension, the independent energy research and business intelligence company has said.

Rystad said the wells most at risk were located in Norway, Brazil, the Bahamas, Guyana, the US, Gambia...

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NOPSEMA has announced approval of the Scarborough project, which it says has satisfied environmental hurdles and the management of greenhouse gas emissions.

This follows a year’s assessment, including an eight-week public comment process.

Woodside CEO, Peter Coleman, said NOPSEMA’s acceptance of the offshore project proposal was a significant step forward for the proposed development of the gas resource, which is now being progressed on a revised schedule due to the current global investment environment.

Coleman said:

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A move to provide immediate bill relief across three states to small businesses and households struggling to pay electricity and gas bills as a result of the COVID-19 pandemic, has been welcomed by one of the country's largest energy infrastructure businesses.

Multinet Gas Networks (MGN) and Australian Gas Networks (AGN), part of the Australian Gas Infrastructure Group (AGIG), which supplies over two million customers across Australia, said the measures would help soften the blow for customers being stressed by indefinite business uncertainty and loss of household income related to COVID-19.

MGN and AGN, as part of AGIG, have been working closely with the energy bodies and stakeholders in implementing this relief package.

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Following the announcement that several key operators in the Permian Basin were significantly reducing capex or production in their positions as a result of the severe oil price fall; Adrian Lara, Oil and Gas Analyst at GlobalData, a data and analytics company, said of the fallout:

“Of all the unconventional plays, the Permian Basin reduction in forecast production growth will be the largest in absolute terms and exemplifies quite well the collateral effect sought by the oil price war initiated by Russia and Saudi Arabia a few weeks ago,” Lara said.

“The capex reduction of 36 key...

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Following oil prices plummeting to an 18-year low on March 18 as a result of the coronavirus-fuelled crisis and oversupply led by Saudi Arabia and Russia cutting oil prices and boosting exports, the Soviets remain in a strong position to weather out the storm.

Anna Belova, Senior Oil & Gas Analyst at data and analytics company GlobalData, said Russian oil and gas operators showed no signs of slowing down as both Russia and the Saudis continued to slash spending.

“Shielded by devaluing currency and progressive taxes that automatically adjust to oil price, producers in Russia remain above...

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The Australian natural gas industry is responding to the personnel and operational challenges posed by the COVID-19 pandemic to ensure vital energy supplies are maintained.

The Australian Petroleum Production & Exploration Association (APPEA) and Australian Pipelines and Gas Association (APGA) are working with members, governments and energy users to ensure the delivery of essential gas supply to local customers.

APPEA Chief Executive Andrew McConville and AGPA Chief Executive Officer Steve Davies confirmed members were taking all steps necessary to ensure the production and delivery of gas supplies continued.

“Our industry provides vital energy resources to millions of...

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88 Energy has announced that drilling of the production hole at the Charlie-1 appraisal well on the Alaska North Slope at Project Icewine will commence imminently.

88E and farm-in partner Premier Oil are targeting 1.6 billion barrels of gross mean prospective oil resource potential, with 480MMBO net to 88E.

As part of the farm-in deal, 88 Energy will operate Charlie-1 via its 100% owned subsidiary Accumulate Energy Alaska, Inc and the cost of the well will be funded by Premier Oil Plc up to US$23 million.

The Charlie-1 well has been designed as a step out appraisal...

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Following the news that Saudi Arabia is responding to Russia’s refusal to a new oil production cut agreement by cutting oil prices and boosting supply, Will Scargill, Managing Oil & Gas Analyst at GlobalData, said of the likely outcome.

“The Saudis’ apparent price war is a risky strategy that may take months to play out. In reality, the brunt of the previous OPEC production cuts were borne by OPEC members and Saudi Arabia more specifically, with Russia not implementing significant cuts.

It appears unlikely that it will allow itself to be forced into them now in response...

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The collapse in crude oil prices is wiping out much of the US petrochemical competitive advantage while global demand is being slammed by the continuing spread of the coronavirus. Financial markets are seizing up, throwing a wet blanket on new chemical investment and M&A activity, and ratcheting up the risk of a global recession, reports Joseph Chang, Global Editor, ICIS Chemical Business.

“All things being equal, this [crude oil plunge] would tend to diminish competitiveness of US-based petrochemicals but it also depends on by-product values from cracking naphtha,” said Kevin Swift, chief economist of the American Chemistry Council (ACC).

Crude oil prices are also being watched closely as this has major implications for downstream prices and margins.

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